The stock market grew 11% in 2025, the Equity Release Council reveals.
The ERC’s fourth quarter report shows that total annual lending increased from £2.3 billion in 2024 to £2.57 billion in 2025.
More than a quarter (26%) of advisers who responded to the council’s latest survey say clients are now using equity release to clear mortgage balances.
Meanwhile, 40% say equity release is used for positive purposes, such as paying for home improvements (21%), vacations (6%), other major purchases like a car (4%) or giving to the family (13%).
The report also shows that the sector has continued to grow, with total lending worth £632 million, up 1.6% compared to the fourth quarter of 2024, when it was £622 million.
The average release rose to £123,174 in Q4 2025, up 5.7% year-on-year.
And this quarter, 1,468 customers returned for further advances, compared to 1,411 in Q4 2024.
Looking ahead, the report shows that four in five advisors surveyed by the council predict more lending in 2026 than in 2025, and only 2% expect a decline.
A similar number suggested they would see the total number of customers grow by 2026.
ERC chief executive Jim Boyd said: “The 11% growth underlines the increasingly important role that housing wealth plays in supporting financial resilience and choice in later life. It reflects something much bigger than short-term market movements: unlocking equity is proving essential to meeting people’s social and economic needs.”
“Modern products are more flexible and secure than ever and for many homeowners, access to home equity is now a core part of their retirement planning, allowing them to enjoy financial freedom and a better quality of life. Property equity release now supports around £1 in every £90 spent by retired households.”
ERC chairman David Burrowes added: “Equity release is increasingly part of homeowners’ retirement plans. Nearly four in ten future retirees (38 percent) are on course for a retirement income below Pensions UK’s ‘minimum standard’.”
“Demographic and economic pressures mean demand is there and likely to grow. Innovations in product design are making modern equity release more flexible and secure, making it more attractive to consumers.”
“The Council also sees continued long-term growth being supported by greater collaboration in the older adult life insurance sector and regulator involvement. In the first quarter of 2026, the Financial Conduct Authority will launch a targeted market review into the late-life life insurance market, exploring how mortgages and property-based solutions can better support consumers borrowing into retirement.
“This is an important step that reflects the reality that late-life borrowing is becoming increasingly common and that the market must continue to evolve to deliver good consumer outcomes.”
“That regulatory focus, combined with collaboration and continued product innovation, gives us confidence in the long-term direction of the industry. We have never had a better opportunity to close the pension and later life funding gap.”
Founder and CEO of Equity Release Group, Mark Gregory, explains: “The latest figures from the Equity Release Council reflect what we have been seeing on the ground for some time, namely that demand in this market is not declining, but evolving.”
“By 2025, Equity Release Supermarket delivered a 16% year-on-year increase in the number of cases completed, demonstrating that demand is driven by structural change rather than short-term market conditions. Therefore, there is a real underlying need for equity release.”
“Today, more and more people are still reaching mortgage debt later in life, often on fixed or reduced incomes, and are trying to make their money last longer.”
“When you combine that with longer life expectancies and the slow demise of defined benefit pensions, it’s no surprise that homeowners are starting to view their property assets alongside their pensions and savings, and not instead.”
“Growth alone isn’t the only story here, though. What has evolved most is the way people want to access advice. Growth hasn’t come from launching a single product or relying on one route to market. It comes from giving people more choice in the way they engage, personalization and choice, and supporting that with the very best advice and clear consumer duty safeguards.”